SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?


To: Howard Bennett who wrote (29244)11/9/1999 6:25:00 PM
From: Techplayer  Respond to of 77400
 
Howard, Of course they can, (just as LU will) at least until the government changes the rules. Taking advantage of the incredible multiples in their stock price is the smartest thing that CSCO could do to keep the growth going at this pace.

Brian



To: Howard Bennett who wrote (29244)11/9/1999 6:32:00 PM
From: John F. Dowd  Respond to of 77400
 
HB: What's the problem? It is a simple decision. Do I build a a second story or buy out the guy next door? The accounting is trickier but the principle is the same. And except for taxes it is the accounting industry and not the government that sets the guidelines for accounting for M&A activity.

It is another way also of chep financing. They buy out a company that has just funded it self for the development of a technology that CSCO doesn't have - so they buy tha financing and development engine and hitch it to the CSCO train. They do this only if they can't do it cheaper themselves from mthe raising of the capital to the hiring of the new people to the time it takes to spin up the new tech. JFD